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The Role of Income and Immigration Policies in Attracting International Migrants

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  • Ortega, Francesc

    ()
    (Queens College, CUNY)

  • Peri, Giovanni

    ()
    (University of California, Davis)

Abstract

This paper makes two contributions to the literature on the determinants of international migration flows. First, we compile a new dataset on annual bilateral migration flows covering 15 OECD destination countries and 120 sending countries for the period 1980-2006. We also collect data on time-varying immigration policies that regulate the entry of immigrants for our destination countries over this period. Second, we extend the empirical model of migration choice across multiple destinations developed by Grogger and Hanson (2011) by allowing for unobserved individual heterogeneity between migrants and non-migrants. Our estimates show that international migration flows are highly responsive to income per capita at destination. This elasticity is twice as high for within-EU migration, reflecting the higher degree of labor mobility within the European Union. We also find that tightening of laws regulating immigrant entry reduce rapidly and significantly their flow.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6655.

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Length: 34 pages
Date of creation: Jun 2012
Date of revision:
Publication status: published as 'The effect of income and immigration policies on international migration' in: Migration Studies, 2013, 1 (1), 47-74.
Handle: RePEc:iza:izadps:dp6655

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Keywords: labor movements; international migration; immigration policies;

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References

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  1. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, MIT Press, vol. 123(2), pages 441-487, 05.
  2. Hatton, Timothy J., 2010. "The Cliometrics of International Migration: A Survey," CEPR Discussion Papers 7803, C.E.P.R. Discussion Papers.
  3. Keith Head & John Ries & Thierry Mayer, 2008. "The erosion of colonial trade linkages after independence," Sciences Po publications 6951, Sciences Po.
  4. Susana Iranzo & Giovanni Peri, 2009. "Migration and Trade: Theory with an Application to the Eastern-Western European Integration," Working Papers 97, University of California, Davis, Department of Economics.
  5. Facchini, Giovanni & Steinhardt, Max, 2011. "What Drives U.S. Immigration Policy? Evidence from Congressional Roll Call Votes," CEPR Discussion Papers 8299, C.E.P.R. Discussion Papers.
  6. di Giovanni, Julian & Levchenko, Andrei A. & Ortega, Francesc, 2012. "A Global View of Cross-Border Migration," IZA Discussion Papers 6584, Institute for the Study of Labor (IZA).
  7. Ortega, Francesc & Polavieja, Javier G., 2012. "Labor-market exposure as a determinant of attitudes toward immigration," Labour Economics, Elsevier, vol. 19(3), pages 298-311.
  8. Libertad Gonzalez & Francesc Ortega, 2009. "Immigration and Housing Booms: Evidence from Spain," CReAM Discussion Paper Series 0919, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  9. Simone Bertoli & Jesus Fernandez-Huertas Moraga & Francesc Ortega, 2010. "Immigration Policies and the Ecuadorian Exodus," CReAM Discussion Paper Series 1001, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  10. Barry Chiswick & Timothy J.. Hatton, 2003. "International Migration and the Integration of Labor Markets," NBER Chapters, in: Globalization in Historical Perspective, pages 65-120 National Bureau of Economic Research, Inc.
  11. David Karemera & Victor Iwuagwu Oguledo & Bobby Davis, 2000. "A gravity model analysis of international migration to North America," Applied Economics, Taylor & Francis Journals, vol. 32(13), pages 1745-1755.
  12. Simone Bertoli & Jesus Fernandez-Huertas Moraga & Francesc Ortega, 2010. "Crossing the Border: Self-selection, Earnings and Individual Migration Decisions," CReAM Discussion Paper Series 1011, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  13. Simone Bertoli & Jesús Fernández-HuertasMoraga, 2011. "Multilateral Resistance to Migration," Working Papers 2011-04, FEDEA.
  14. McKenzie, David & Theoharides, Caroline & Yang, Dean, 2012. "Distortions in the international migrant labor market :evidence from Filipino migration and wage responses to destination country economic shocks," Policy Research Working Paper Series 6041, The World Bank.
  15. Francesc Ortega & Giovanni Peri, 2009. "The Causes and Effects of International Migrations: Evidence from OECD Countries 1980-2005," Working Papers 96, University of California, Davis, Department of Economics.
  16. Ortega, Francesc, 2009. "Immigration, Citizenship, and the Size of Government," IZA Discussion Papers 4528, Institute for the Study of Labor (IZA).
  17. George J. Borjas, 1987. "Self-Selection and the Earnings of Immigrants," NBER Working Papers 2248, National Bureau of Economic Research, Inc.
  18. Graziella Bertocchi & Chiara Strozzi, 2007. "The Evolution of Citizenship: Economic and Institutional Determinants," Center for Economic Research (RECent) 009, University of Modena and Reggio E., Dept. of Economics.
  19. Grogger, Jeffrey & Hanson, Gordon H., 2011. "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, vol. 95(1), pages 42-57, May.
  20. Benhabib, Jess, 1996. "On the political economy of immigration," European Economic Review, Elsevier, vol. 40(9), pages 1737-1743, December.
  21. Timothy J. Hatton, 2005. "European Asylum Policy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 194(1), pages 106-119, October.
  22. Graziella Bertocchi & Chiara Strozzi, 2008. "International Migration and the Role of Institutions," Center for Economic Research (RECent) 012, University of Modena and Reggio E., Dept. of Economics.
  23. Pilar García Gómez & Guillem López, 2003. "Hypothesis on immigration and welfare," Economics Working Papers 905, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2005.
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RePEc Biblio mentions

As found on the RePEc Biblio, the curated bibliography for Economics:
  1. > International Economics > International Migration
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Cited by:
  1. Ortega, Francesc & Peri, Giovanni, 2014. "Openness and income: The roles of trade and migration," Journal of International Economics, Elsevier, vol. 92(2), pages 231-251.
  2. Ortega, Francesc & Peri, Giovanni, 2013. "Migration, Trade and Income," IZA Discussion Papers 7325, Institute for the Study of Labor (IZA).
  3. Betz, William & Simpson, Nicole B., 2013. "The Effects of International Migration on the Well-Being of Native Populations in Europe," IZA Discussion Papers 7368, Institute for the Study of Labor (IZA).

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